Beruflich Dokumente
Kultur Dokumente
ON THE TOPIC OF
METHODES and TECNIQUES OF DATA COLLECTION
IN THE SUBJECT OF ADVANCE AUDITING
SUBMITTED TO
UNIVERSITY OF MUMBAI
I
BY
KARNATAKA SANGHAS
Dr.V.S.ADIG
AL
Kanchangaon,Khambalpada,
Thakurli (East), Dist. Thane 421
201.
M.A.ph.D.
Principal
Tel.:2439952/2803975 Fax:2441826
Website
:www.ksmanjunathacollege.edu.in
E-mail ID
:mcac_college@rediffmail.com
principal@ksmanjunathacollege.edu.in
LBT No.KDMC/LBT-TIN/H/12001824
CERTIFICATE
This is to certify that the project entitled submitted By RASIKA ARUN
SHELARRoll no. 3018 student of M.Com PartII Advanced Accountancy (University
of Mumbai) Semester IV examination has not submitted by any other examination
& does not form a part of any other course undergone by the candidate as a result of
genuine & Bonafide effort. It is further certified that she has completed the required
phases of the project. This project is original to the best of our knowledge & has been
accepted for Internal Assignment.
Internal Examiner
Examiner
Co-ordinator
Principal
External
College seal
Place:Thakurli
III examination during the Academic year 2015-16.The said report are forms of my
own contribution based on actual work carried by me under the guidance &
supervision of Mrs.suchitra poojary
I further wish to state that this work is original & has not submitted for any other
degree of this or any other examination. Whenever the references have been made to
the previous work of others, it has been clearly indicated as such & included in the
Bibliography or list of preferences.
Signature
of
student
Roll no.:3018
Place: Thakurli
Date:
ACKNOWLEDGEMENT
I have received valuable support from the various individuals & institutions. It will be
difficult to name all of them here. However, I would like to specifically record my
sense of gratitude & indebtedness to some of them.
I am indeed grateful & wish to acknowledge my deep sense of gratitude to Mrs.
VRUNDA YADWAD whose erudite & profound scholarship inspired me to undertake
project assignment & complete said project under his guidance, support & sparing his
valuable time in his busy schedule without which this report would not have been
possible.
CHAPTER 1
INTRODUCTION
&
THEORETICAL VIEW
Financial Statements
Definition: Financial statements are a collection of reports about an organization's
financial results, financial condition, and cash flows. They are useful for the following
reasons:
To determine the ability of a business to generate cash, and the sources and
uses of that cash.
To determine whether a business has the capability to pay back its debts.
To derive financial ratios from the statements that can indicate the condition of
the business.
Balance sheet. Shows the entity's assets, liabilities, and stockholders' equity as
of the report date. It does not show information that covers a span of time.
Income statement. Shows the results of the entity's operations and financial
activities for the reporting period. It includes revenues, expenses, gains, and losses.
Statement of cash flows. Shows changes in the entity's cash flows during the
reporting period.
If financial statements are issued strictly for internal use, there are no guidelines, other
than common usage, for how the statements are to be presented.
At the most minimal level, a business is expected to issue an income statement and
balance sheet to document its monthly results and ending financial condition. The full
set of financial statements is expected when a business is reporting the results for a
full fiscal year, or when a publicly-held business is reporting the results of its fiscal
quarters.
inflows and outflows during a period from other non-operating activities, namely
investing and financing. To investors, cash from all sources, not just accounting
income from operations, is what pays back their investments. The importance of the
cash flow statement is that it shows the exchange of cash between a company and the
outside world during a period, and so investors can know if the company has enough
cash to pay for expenses and asset purchases.
Shareholders Equity
The statement of shareholders equity is especially important to equity investors
because it shows the changes in various equity components, including retained
earnings, during a period. The amount of shareholders equity is a companys total
assets minus its total liabilities, representing the companys net worth.
Chapter 2
Profile of Company
Products
Bajaj manufactures and sells motorcycles, scooters, auto-rickshaws and most recently,
cars. Bajaj Auto is Indias largest exporter of motorcycles and three-wheelers. [1] Bajaj
Autos exports accounted for approx. 35% of its total sales. 47% of its exports are
made to Africa.[1] Boxer motorcycle is the largest selling single brand in Africa.
Motorcycles
Motorcycles in production are the Platina, Discover, Pulsar and Avenger. Bajaj also
distributes motorcycles in India for other manufacturers, such as the Kawasaki Ninja
250R, the Ninja 650R and new for 2012, the KTM Duke 200.
In FY 2012-13, it sold approx. 3.76 million motorcycles which accounted for 31% of
the market share in India. Of these, approx. 2.46 million motorcycles (66%) were sold
in India and remaining 34% were exported.
Three wheelers
It is the world's largest manufacturer of 3-wheelers and accounts for almost 84% of
Indias three-wheeler exports. During the FY 2012-13, it sold approx. 480,000 threewheelers which was 57% of the total market share in India. Out of these 480,000
three-wheelers, 53% were exported and remaining 47% were sold in India.
Cars
Low cost cars
In 2010, Bajaj Auto announced cooperation with Renault and Nissan Motor to develop
a US$2,500 car, aiming at a fuel efficiency of 30 kilometres per litre (3.3 L/100 km),
or twice an average small car, and carbon dioxide emissions of 100 g/km.
On 3 January 2012, Bajaj auto unveiled the Bajaj RE60, a mini car for intra-city urban
transportation. The target customer group will be Bajaj's three-wheeler customers.
According to its Managing Director Rajiv Bajaj, the RE60 powered by a new 200 cc
rear mounted petrol engine will have a top speed of 70 kilometres per hour (43 mph),
a mileage of 35 kilometres per litre and carbon dioxide emissions of 60 g/km.
Acquisitions
Tempo Firodia: Bajaj Auto bought a controlling stake in the Tempo Firodia company,
renaming it "Bajaj Tempo". Germany's Daimler-Benz, a long-time collaborator with
Firodia because of their ownership of the original Tempo works in Germany, owned
16% of Bajaj Tempo. Daimler sold their stake back to the Firodia group in 2001,
meaning that they once again held a controlling interest, with BAL retaining 24% of
the shares. It was agreed that Bajaj Tempo would gradually phase out the use of the
"Tempo" brand name, as it still belonged to Mercedes-Benz. The name of the
company was changed to Force Motors in May 2005, dropping "Bajaj" as well as
"Tempo", over the objections of Bajaj Auto with whom the company shares a long
history as well as a compound wall.
KTM Power Sports AG: In November 2007, Bajaj Auto acquired 14.5% stake
in KTM Power Sports AG (holding company of KTM Sportmotorcycles AG). The two
companies have signed a cooperation deal, by which KTM will provide the know-how
for joint development of the water-cooled four-stroke 125 and 250 cc engines, and
Bajaj will take over the distribution of KTM products in India and some other
Southeast Asian nations. As on 31 March 2013, Bajaj Auto held 47.96% stake in the
company.
Bajaj Pulsar 135 LS received Bike of the Year 2010 award from BBC TopGear and Bike India.
Pulsar 220 DTS-Fi received the Bike of the Year 2008 award by all major
Indian automobile magazines like Overdrive, AutoCar, Business Standard
Motoring and Bike Top Gear.
In 2006, Bajaj Auto won the Frost & Sullivan Super Platinum Award for
manufacturing excellence in its Chakan Plant.
Bajaj Auto received the Bike Maker of the Year award in ICICI Bank
Overdrive Awards 2004.
Bajaj Pulsar 180 DTS-i won the BBC World Wheels Viewers Choice Two
Wheeler of the Year 2003 award.
In June 2012, Hero MotoCorp approved a proposal to merge the investment arm of its
parent Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18
months of its split from Honda Hero.
Products
Motorcycles
Sleek (Discontinued)
Street (Discontinued)
Achiever
CD 100, CD 100 SS, Hero Honda Joy, CD Dawn, CD Deluxe, CD Deluxe (Self
Start)
Hunk
Passion, Passion Plus, Passion Pro, Passion XPro, New Passion Pro TR
Hero Impulse launched in 2011 after the separation of Hero and Honda. Its
India's first off-road and on road Bike.
Hero HX250r
Scooters
It has 4 models in scooters:
Pleasure
Maestro
Maestro Edge
Duet
Company Performance
The company has sold over 47 million 2-wheelers since its inception in 1984 till
March 2013. It sold 6.07 million 2-wheelers in 2012, out of which 5.5 million were
motorcycles. Hero Motocorp sells more two wheelers than the second, third and fourth
placed two-wheeler companies put together. Its most popular bike Hero Honda
Splendor sells more than one million units per year
In 2013, Hero MotoCorp registered best ever calendar year performance of more than
6.1 million unit sales. By selling 6.25 lakh units in the month of October, it became
the first-ever manufacturer to cross landmark 6 lakh unit sales in a month. In the last
quarter of the year or say in the festive season, the company sold more than 1.6
million units, while in non festive time in AprilMay 2013, it managed to sell out
quite good numbers of units- 1.1 million.
The Brand Trust Report published by Trust Research Advisory has ranked Hero
Honda in the 7th position among the most trusted brands in India.
It received the 'Best value for Money Bike Maker' and 'Best Advertising' in
Two Wheelers Category at the Auto India Best Brand Awards 2012.
Chapter 3
Financial Statement
of
Bajaj Auto Ltd
Statement of Profit and Loss for the year ended 31st March 2015
Cash Flow Statement for the year ended 31st March 2015
Chapter 4
Financial Statement
of
Hero Motocorp Ltd
Statement of Profit and Loss for the year ended 31st March 2015
Cash Flow Statement for the year ended 31st March 2015
CHAPTER 5
Comparison
of
Financial Statements
CHAPTER 6
Conclusion
Findings
It was found that profit of Bajaj Auto Ltd for year 2014-15 was higher than
Hero Motocorp Ltd.
Suggestions
To increase the sale of motorcycles, demand of the market must be studied
thoroughly.
New products should be launched.
Company should focus on Innovation, Research and Development.
To attract the young generation, new sports bike must be launched like the
Bajaj Auto Ltd did it in last by launching KTM Duke series.
Company should increase their service station chains. Whenever customer goes
with the problem and after solving their problems customers feels satisfied.
Problems must be solving immediately so that customer may not feel
inconvenient.
After sale of their products the companies should take feedback, whether their
vehicle is performing well or not. It will help in maintaining good customer
relation.
Companies should shows actual features of the products in advertisements.
Cost of motorcycles should not be high.
Conclusion
Analysis and interpretation of financial statements is an important tool in assessing
companys performance. It reveals the strengths and weaknesses of a firm. It helps the
clients to decide in which firm the risk is less or in which one they should invest so
that maximum benefit can be earned. It is known that investing in any company
involves a lot of risk. So before putting up money in any company one must have
thorough knowledge about its past records and performances. Based on the data
available the trend of the company can be predicted in near future.
This project mainly focuses on the basics of different types of financial statements.
Balance Sheet and Profit & Loss statements of five different coal and non coal mining
companies have been studied.
From ratio analysis of Balance Sheet and P & L Statement of Bajaj Auto Ltd of 201415 it was concluded that liquidity position of the company is good. Current ratio, debtequity ratio, quick ratio, net profit margin, operating profit margin, gross profit
margin, return on assets, return on investments and return on capital employed were
found to be satisfactory.
Short term liquidity position of Hero Motocorp Ltd in 2014-15 was not good as
compared to Bajaj Auto Ltd. However, current ratio, quick ratio, net
profit margin, return on assets, return on investments and return on capital employed
were unsatisfactory. The ratios that are found to be desirable are debt-equity ratio,
operating profit margin and gross profit margin.